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Chinese Fast Food Companies.

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Introduction

Chinese Fast Food Companies The University of Exeter 09/20/02 Contents 1.Summary 1 2.Introduction 2 3.Comparative Analysis between Chinese and Western Fast Food Companies 3 3.1 General Discrepancies between Chinese and Western Fast Food Companies 5 3.2 Core Competitiveness of Western Fast Food Companies 6 3.3 Case Analysis of Successful Chinese and Western Fast Food 7 4.Conclusion 10 5.Bibliography 11 Chinese Fast Food Companies 1. Summary This article mainly compares Chinese and Western fast food companies, and analyses cases between successful Chinese and Western fast food companies. The article also discusses the policies in the development of Chinese fast food industry, and the influences of Chinese fast food industry after China entered World Trade Organization. It also puts forward some proposals and possible methods about investment into fast food industry. 2. Introduction With the rapid economic development in China, its city area is steadily growing, and due to the growth of people's income and faster pace of life, dining out is increasingly popular among Chinese. A big market for Western fast food companies has emerged. For some urban couples, eating out becomes a kind of fashion and a little break from daily home cooking. It seems that children would prefer to eat out on weekend to stay home and enjoy the nights with their parents or friends. Chinese are entering a modern life and sampling the foreign cuisines. ...read more.

Middle

Since fast food is closely related with the rapid economic growth, Chinese fast food industry will be bound to have a broad market prospect and great market potential with the rapid development of the Chinese Economy. 3.2 Core Competitiveness of Western Fast Food Companies Most Chinese are attracted to foreign fast food restaurants because of: * Good service (compared to most Chinese restaurants) * Consistent food quality * Heavy advertising * Pleasant surroundings * High-quality food * Fast These factors, along with advanced operational systems, strategic locations, assembly line methods, and effective management policies, mean that foreign fast food chains are poised for rapid, large-scale expansion. Compare to the successful foreign fast food companies, Chinese local fast food restaurants stress excellence in food quality and taste and have been aggressively improving their service and atmosphere. However, they are financially strapped and have problems in food consistency. Most Chinese fast food restaurants use cheap labor instead of more expensive machines for food preparation. As a result, recipes, ingredients, cooking methods and waiting time vary from restaurant to restaurant. Until the Chinese catch up in consistency, hygiene, finance and management, the major foreign fast food chains will probably be setting the pace in this rapidly growing industry. 3.3 Case Analysis of Successful Chinese and Western Fast Food (i) Malan Noodle serves as the backbone of Chinese fast food Noticing the ever-crowded foreign fast food restaurants; many aspiring Chinese companies are also entering the fast-food industry. ...read more.

Conclusion

Usually the company will spend a long time finding out the local culture, open locations, legal, suppliers, construction, personnel and government relations. 2. Cooperates with foreign companies. Foreign partners help McDonald's to shape outstanding marketing methods and menu to local conditions. Local products have been added although US-style food still plays a leading role on the menu. For example, the adaptation of Chinese taste also contributed to the expansion of western fast food in China, such as the red bean pie and Chinese vegetable soup at McDonald's. 3. McDonald's success is based on the good relationship with suppliers, tight control over store-level operating procedures, nationwide marketing might, and a franchising system that encourages entrepreneurial franchisees. 4.Conclusion Western style fast food has been very successful in the China markets in terms of its high speed of development and its warm acceptance by the Chinese consumers. The success of Western-style fast food restaurants will continue to serve as a catalyst for the future development and improvement of the Chinese fast food sector. What's more, the appearance of western style fast food stores has definitely changed the eating habits of Chinese people, especially in the younger generation. China's Ministry of Internal Trade has allocated $1.2 million for a campaign to help China improve its domestic chain-store management and fast food production. Currently China's fast food industry is in its infancy, however, its consumption and supply market have already formed. It is estimated that by 2010 the increment of its turnover will be RMB 250 billion. 5. ...read more.

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